Cabinet Committee on Economic Affairs 
Cabinet approves enhanced Minimum Support Prices  for Rabi Crops of 2018-19 Season to be marketed in 2019-20 Season.
Giving a boost to farmers’ income, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi has approved the increase in the Minimum Support Prices  for all Rabi crops for 2018-19 to be marketed in 2019-20 season. The farmer friendly initiative will give additional return to the farmers of Rs 62,635 crore by way of increasing MSP of notified crops to at least 50 per cent return over cost of production and will aid in doubling farmers’ income.
The increase in the MSPs of wheat has been raised by Rs.105 per quintal, safflower by Rs.845 per quintal, barley by Rs.30 per quintal, masur  by Rs.225 per quintal, gram by Rs.220 per quintal and rapeseed & mustard by Rs.200 per quintal is another major step in this regard.
Details:
- The MSPs fixed by the government for wheat, barley, gram, masur, rapeseed & mustard and safflower are much higher than the cost of production.
- For wheat the cost of production is Rs 866 per quintal and MSP is Rs 1840 per quintal which gives a return of 112.5 per cent over cost of production;
- for barley the cost of production is Rs 860 per quintal and MSP is Rs 1440 per quintal giving a return of 67.4 per cent;
- for gram cost of production is Rs 2637 per quintal and MSP is Rs 4620 per quintal giving a return of 75.2 per cent;
- for masur cost of production is Rs 2532 per quintal and MSP is Rs 4475 per quintal giving a return of 76.7 per cent;
- for rapeseed & mustard the cost of production is Rs 2212 per quintal and MSP is Rs 4200 per quintal giving a return of 89.9 per cent and
- for safflower the cost of production is Rs 3294 per quintal and MSP is Rs 4945 per quintal giving a return of 50.1 per cent.
The Minimum Support Prices for all rabi crops of 2018-19 season to be marketed in 2019-20 is as follows:
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Crop
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MSP
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MSP
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Cost of production
2018-19 
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Increase in MSP
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Return over cost|
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2017-18
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2018-19
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Absolute
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%
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Wheat
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1735
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1840
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866
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105
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6.1
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112.5
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Barley
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1410
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1440
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860
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30
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2.1
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67.4
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Gram
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4400
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4620
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2637
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220
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5.0
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75.2
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Masur 
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4250
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4475
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2532
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225
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5.3
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76.7
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Rapeseed & Mustard
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4000
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4200
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2212
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200
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5.0
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89.9
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Safflower
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4100
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4945
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3294
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845
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20.6
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50.1Includes all paid out costs such as those incurred on account of hired human labour, bullock labour/machine labour, rent paid for leased in land, expenses incurred on use of material inputs like seeds, fertilizers, manures, irrigation charges, depreciation on implements and farm buildings, interest on working capital, diesel/electricity for operation of pump sets etc, miscellaneous expenses and imputed value of family labour.
Background:
With the new Umbrella Scheme “Pradhan Mantri Annadata Aay SanraksHan Abhiyan’  announced by the government there is a robust mechanism available to enable farmers realize the MSP in fuller measure. The Umbrella Scheme consists of three sub-schemes i.e. Price Support Scheme , Price Deficiency Payment Scheme  and Private Procurement & Stockist Scheme  on a pilot basis. Government has decided to give additional guarantee of Rs.16,550 crore making the total government guarantee Rs. 45,550 crore. In addition to this, budget provision for procurement operations has also been increased and Rs. 15,053 crore is sanctioned for the implementation of PM-AASHA. Central and State procurement agencies like Food Corporation of India, National Agricultural Cooperative Marketing Federation of India Limited, Small Farmers Agri –Business Consortium would continue to provide price support to farmers for the Rabi crops.